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Egyptian Resorts Expects Tourism to Boost Land Sales in 2011, CEO Says

Egyptian Resorts Expects Tourism to Boost Land Sales in 2011, CEO Says
Region: Egypt
Created: Aug 28, 2010, modified: Jan 13, 2012, overall rating: 0.000

Egyptian Resorts Company is the second- biggest publicly traded Red Sea Resort Developer and expects a recovery in tourism to boost the sales of land in its Sahl Hasheesh project in 2011.

“We're basing our optimism on sales in 2011 on more hospitality business,” the CEO of the company said in an interview at his office in Cairo yesterday. “What we are seeing is that is that hospitality market is not suffering as much, as other industries. Tourism figures speak for themselves".

"Egypt recorded a 24 percent increase in tourism revenue in the first quarter of 2010, as the industry recovered from last year's global financial crisis".  This statement came from Tourism Minister - Zoheir Garranah in an interview that took place this April. "Revenue rose to $2.7 billion as tourist arrivals advanced by 29 percent to 3.46 million", he said. 

Land Sales

"Egyptian Resorts, which owns a 41 million square metre plot of land, 22 kilometres south of Hurghada on the Egyptian Red Sea coast, hasn’t sold a plot of land since 2008".

The company develops the land with infrastructure such as water, electricity and communication links, and sells it to sub- developers in the hospitality or in the second home business. The Sahl Hasheesh project is expected to be fully completed by 2040, with at least 60,000 full-time residents, he said.

“We could have sold land in the past 18 months, but we would have been hurting ourselves in the long term, instead of helping the overall project,” he said. “We would have oversupplied the market with residential units and we would have been selling this land at a lower average price per square metre, then what was achieved in 2008 which was $142.5".

Hospitality Activity 

"Orascom Development Holding AG, the biggest publicly traded resort developer in Egypt, is sub developing a 2.5 million square metre plot that will encompass a marina in Sahl Hasheesh and sales for that project will start in the second quarter of 2011,

Middle East News


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